A Firm That Controls Both the Upstream as Well as the Downstream

question 22

Multiple Choice

A firm that controls both the upstream as well as the downstream stages of production is said to be:

• A)functionally integrated.
• B)perpendicularly integrated.
• C)vertically integrated.
• D)horizontally integrated.

---

Definitions:

Classical Decision Theory

A framework in managerial economics that outlines how decisions should be made, considering variables and outcomes in a rational and structured manner.

Satisfactory Alternative

An acceptable option or solution that meets basic requirements or needs, though it may not be the optimal choice.

Behavioural Decision Model

Decision-making with limited information and bounded rationality.

Rational

Based on or in accordance with reason or logic; a way of thinking or decision-making that is logical and based on facts and evidence.